Last Thursday’s signals were not triggered, as there was no bearish price action at 1.2846.
Today’s USD/CAD Signals
Risk 0.50% per trade.
Trades may only be entered before 5pm New York time today.
Long Trades
Go long after the next bullish price action rejection following the next entry into the zone between 1.2805 and 1.2787, or the next touch of 1.2746.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is 20 pips in profit.
Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
USD/CAD Analysis
The more dovish approach from the Bank of Canada which became obvious last week has continued to lift the price, but the chart below shows that a broad distributive topping formation which suggests we will now see a bearish retracement. This means that is makes sense to keep a bearish bias, and wait for the price to reach or at least get very close to the supportive area below which starts at 1.2805. A bullish bounce there might provide a great long trade entry opportunity. There are no obvious resistance levels before 1.3050, or at least the big psychological level at 1.3000, so there is room for the price to rise – the line of least resistance is certainly upwards.
There is no long-term trend, but I have a bullish bias.There is nothing important due today concerning either the CAD or the USD.
There is nothing important due today concerning either the CAD or the USD.